ServiceNow reports strong Q3 growth, raises AI target, and guides below revenue expectations
On October 28, 2026, ServiceNow reported Q3 revenue of $4,106 million, subscription revenue of $3,988 million, and adjusted EPS of $1.00. The company lifted its 2026 AI annual contract value target to $1.7 billion and raised its 2026 free cash flow margin goal to 36%. ServiceNow also issued Q4 total-revenue guidance of $4.25B-$4.26B, and its shares fell sharply after the mixed results.
Why it matters
The Q4 total-revenue outlook is below the $4.36B expectation cited in the materials, creating a near-term pressure point despite continued subscription growth and the higher AI target. The company expects its increased AI investments and partnerships to support longer-term commercialization, but the immediate market reaction was negative.
Key facts
- 1Q3 total revenue was $4,106 million, up 20.5% year over year and 20% in constant currency. stocktitan.net
- 2Q3 subscription revenue reached $3,988 million, representing 21% year-over-year growth and 20.5% growth in constant currency. stocktitan.net
- 3Current remaining performance obligations were $13.65 billion at the end of Q3, up 20.5% year over year and 21% in constant currency. stocktitan.net
- 4ServiceNow raised its 2026 AI annual contract value target to $1.7 billion, 70% above the beginning-of-year target. stocktitan.net
- 5The company increased its 2026 free cash flow margin goal to 36%. seekingalpha.com
- 6Q4 total-revenue guidance was $4.25B-$4.26B versus an expected $4.36B. investing.com
Open questions
- Materials disagree on whether ServiceNow's adjusted EPS beat or missed the estimate.
- The reported share-price decline varies across materials because the reports refer to different after-hours or premarket timestamps.
Summary written by AlphAI AI Desk from 20 of 42 sources. Not investment advice. Figures are as stated by the linked sources.